HomeMy WebLinkAboutResolution Fort Worth Local Development Corporation (FWLDC) FWLDC-2011-01RESOLUTION NO. FWLDC-2011-01
FORT WORTH LOCAL DEVELOPMENT CORPORATION
RESOLUTION
OF THE BOARD OF TRUSTEES
Authorizing n Loan to Oliver's Fine Foorls, Inc., for the Purpose
of Funding Tenant Improi,ements at 415 Throckmorton St.
Necessary for Coni,ersion of that Property into n Grocery Store
WHEREAS, the Fort Worth Local Development Corporation (the "Corporation") was
incorporated on June 24, 1987 as a Texas non-profit corporation organized for the benefit of the
City of Fort Worth (the "City"), specifically to (i) provide assistance to the City in encouraging,
fostering and promoting the renovation, construction, rehabilitation and establishment of
economic development facilities within the City, and (ii) administer programs to provide
financial assistance to qualified entities or persons, including the establishment of one or more
revolving loan funds to such entities or persons related to job creation and economic
development activity in the City; and
WHEREAS, Oliver's Fine Foods, Inc. ("Oliver's"), a family -owned and operated
neighborhood -oriented market that specializes in prepared appetizers and meals, gourmet cheese,
fresh meats and fish, deli meats, sandwiches, salads, and desserts, as well as premium wines and
beers, wishes to lease and renovate the space in the City's downtown at 415 Throckmorton St.
(the "Leased Premises") for use as a grocery store; and
WHEREAS, because of an estimated $450,000.00 gap between the costs to finish -out
the Leased Premises for use as a grocery store and the achievable market rents at the site,
Oliver's has requested financial assistance from the City in order to undertake this project; and
WHEREAS, the City's Comprehensive Plan embraces the Downtown Fort Worth
Strategic Action Plan, sponsored by the City, Downtown Fort Worth, Inc. and the Fort Worth
Housing Authority, which encourages the promotion of public incentives to encourage
downtown housing development; and
WHEREAS, the City staff has represented to the Corporation's Board of Trustees (the
"Board") that it will recommend that the City make certain annual Economic Development
Program Grants, as authorized by Chapter 380 of the Texas Local Government Code and City
Council Resolution No. 3716-03-2009 (the "380 Grant Payments"), over the course of up to
twenty (20) years; and
WHEREAS, in order to provide Oliver's with an immediate funding source to pay for
the tenant improvements necessary for the Leased Premises to be used as a grocery store, the
City staff has requested that the Board consider loaning Oliver's a sum, payable from the
Corporation's currently available revenues, not to exceed the lesser of (i) the costs of such tenant
improvements or (ii) $450,000.00 of such tenant improvements; and
WHEREAS, the Board finds that development of a grocery store in the City's downtown
is essential to attract additional downtown housing developments and residents; and
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Resolution re: East Berry Renaissance TIF Loan
RESOLUTION NO. FWLDC-2011-01
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WHEREAS, consistent with the Corporation's economic development objectives, the
Corporation is willing to make such a loan to Oliver's on certain terms and conditions set forth
herein and that may otherwise be acceptable to the President and legal counsel for the
Corporation;
NOW, THEREFORE, BE IT RESOLVED that the Corporation hereby authorizes a
loan to Oliver's that includes the following terms and conditions:
• The amount of the loan shall not exceed the lesser of (i) the costs to construct and install
tenant improvements necessary for the Leased Premises to be used as a grocery store or
(ii) $450,000.00 of such costs.
• The term of the loan shall not exceed twenty (20) years.
• The loan shall be interest -free.
• Oliver's will be required to repay the loan in annual installments in the greater amount of
(i) one hundred percent (100%) of the 380 Grant Payment received in the same year or
(ii) the following minimum amount:
o Years 1-2: $15,000.00
o Years 3-5: $20,000.00
o Years 6-20: $24,000.00
• The Corporation shall have a security interest in the 380 Grant Payments made to
Oliver's and to any equipment (non -fixtures) installed in the Leased Premises whose
costs are included as tenant improvements covered by the loan.
• Sundance West Partners, LP, which owns the Leased Premises, will serve as guarantor of
the loan, as follows:
o To pay any shortfall on the minimum annual installment due in a given year of the
loan term; and
o To repay the loan in full on an accelerated schedule in the event Oliver's vacates
the Leased Premises and the Leased Premises are not used and operated as a
comparable grocery store within twelve (12) months following such vacation.
FURTHER RESOLVED, that the President or Vice President is hereby authorized to
execute and file a loan agreement between the Corporation and Oliver's, Inc. and any other
related and necessary documents, on terms and conditions acceptable to and approved by the
President and legal counsel for the Corporation; and
FURTHER RESOLVED, that the Secretary or any Assistant Secretary of the
Corporation is hereby authorized and directed to certify the adoption of this Resolution.
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RESOLUTION NO. FWLDC-2011-01
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Adopted this 1st day of March, 2011.
Frank Moss
President
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Resolution re: East Berry Renaissance TIE Loan